Answer:
Step-by-step explanation:
Convert to a decimal
Step 1. Reduce the fraction to its lowest terms.
Divide both numerator and denominator by their greatest common factor (12)
Step 2. Convert the denominator to a power of 10
Multiply both numerator and denominator by 2.
Step 3. Divide the numerator by the denominator
Dividing by 10 moves the decimal point one place to the left.
Given Information:
Monthly payment = MP = $1500/4 = $375
Monthly interest rate = r = 25/12 = 2.083%
Required Information:
Present Value = ?
Answer:
Explanation:
n = 10*4
n = 40 monthly payments
The present value is found by
Where r is monthly interest rate.
MP is the monthly payment.
Therefore, $10,110 is the present value of 10 quarterly payments of $1500 each at 25% interest rate compounded each month.